The U.S R&D Enterprise
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1 The U.S R&D Enterprise Patrick J Clemins October 22, 2010 for the Chinese Academy of Sciences AAAS R&D Budget and Policy Program
2 The FY 2011 Federal Budget $3.8t total budget, $1.3t unified deficit $1.3t discretionary budget (+0.3%) $532b nondefense budget (+1.4%) Rescuing the Economy A Foundation for Economic Growth and Job Creation Small business initiatives Investing in science and basic research Restoring Responsibility Three year non-security discretionary funding freeze
3 Composition of the Proposed FY 2011 Budget Total Outlays = $3.8 trillion outlays in billions of dollars Other Mandatory $647 Net Interest $251 Defense Discretionary $661 [Defense R&D] $83 Medicaid $297 Nondefense Discretionary $599 Medicare $491 Social Security $730 [Nondefense R&D] $71 Source: Budget of the United States Government FY Projected unified deficit is $1.3 trillion AAAS
4 Trends in Discretionary Spending budget authority in billions of constant FY 2010 dollars Total Discretionary w/ ARRA Defense Discretionary w/ ARRA Nondefense Discretionary w/ ARRA Source: Budget of the United States Government, FY FY data are budget projections AAAS
5 Federal R&D in Context The federal R&D investment is spread across over two dozen departments and agencies Only two manage more than 10% of the investment Department of Defense (52.7%) Department of Health and Human Services (21.7%) The federal R&D investment is also spread across 11 of the 12 appropriations subcommittees. Role of federal R&D Supports federal missions Drives U.S. innovation
6 Character of R&D The Innovation Lifecycle Basic Research Study toward knowledge or understanding of fundamental properties and phenomena without a specific need in mind. Applied Research Study toward knowledge or understanding necessary to satisfy a specific need. Development The application of knowledge or understanding toward the production of materials, devices, systems, or methods. Facilities and Equipment (R&D Plant)
7 Character of R&D, FY 2011 budget authority in billions of dollars R&D Facilities Development Applied Research Basic Research Defense R&D Nondefense R&D Source: OMB R&D data, agency budget justifications, and agency budget documents. Defense R&D = DOD + DOE defense AAAS
8 Federal R&D Funding by Source outlays in billions of constant 2008 dollars Other Private Industry Federal Government Source: NSF, Division of Science Resources Statistics, National Patterns of R&D Resources (NSF ) 2008 figures are preliminary AAAS
9 Character of R&D, 2008 outlays in billions of dollars Development 150 Applied Research 100 Basic Research 50 0 Federal Government Private Industry Other Source: NSF, Division of Science Resources Statistics, National Patterns of R&D Resources (NSF ) Figures are preliminary AAAS
10 The FY 2011 Federal R&D Investment Total R&D: $148.1b, -0.3% from FY 2010 Basic Research: $30.4b, +4.3% Applied Research: $31.6b, +2.1% Development: $81.5b, -2.9% Equipment and Facilities: $4.6b, +1.3% $82.2b for defense R&D, -4.8% $65.9b for non-defense R&D, +5.9% -1.4% in constant dollars from FY % in constant dollars since FY 2004 Peak in FY 2009
11 Trends in Federal R&D in billions of constant FY 2010 dollars Total R&D Development Research Facilities Source: AAAS analyses of R&D in annual AAAS R&D reports. FY 2011 figures are latest AAAS estimates of FY 2011 request. R&D includes conduct of R&D and R&D facilities figures are NSF data on obligations in the Federal Funds survey AAAS
12 Total R&D by Agency, FY 2011 budget authority in billions of dollars DHS, $1.0 USDA, $2.4 All Other, $6.6 Total R&D = $148.1 billion NASA, $11.0 NSF, $5.5 DOE, $11.2 DOD, $78.0 HHS (NIH), $32.2 Source: OMB R&D budget data, agency budget justifications, and other agency documents. R&D includes conduct of R&D and R&D facilities AAAS
13 Trends in R&D by Agency in billions of constant FY 2010 dollars ARRA Funding All Other USDA NSF NASA DOE NIH DOD Source: AAAS Report: Research & Development series. FY 2010 and FY 2011 figures are latest estimates figures are NSF data on obligations in the Federal Funds survey AAAS
14 Trends in Research by Agency in billions of constant FY 2010 dollars ARRA Funding All Other USDA NASA NSF DOD DOE NIH Source: AAAS Report: Research & Development series. FY 2010 and FY 2011 figures are latest estimates. Research includes basic research and applied research figures are NSF data on obligations in the Federal Funds survey AAAS
15 NASA Total R&D Request: $11.0b House: $9.7b, +4.1% Senate: $10.5b, +12.4% NASA Reauthorization (S.3729) International Space Station through 2020 One additional shuttle mission Commercial cargo and crew services for near-earth orbit New space launch system and multi-purpose crew vehicle New $500 million Space Research and Technology Program NASA in billions of constant FY 2010 dollars Total R&D ARRA
16 USDA Total R&D Request: $2.1b House: $2.2b, +4.4% Senate: $2.2b, +3.9% ARS R&D (Intramural) Request: $1.1b House: $1.2b, -3.3% Senate: $1.3b, +0.0% AFRI Total (Extramural) Request: $429m, +63.4% House: $312m, +18.9% Senate: $310m, +18.1% USDA in billions of constant FY 2010 dollars Total R&D ARRA
17 National Science Foundation Total Request: $7.42b House: $7.42b, +8.0% Senate: $7.35b, +7.0% R&D Request: $5.54b House: $5.50b, +8.6% Senate: $5.49b, +8.3% National Innovation Strategy Workforce Development Broadening Participation National Science Foundation in billions of constant FY 2010 dollars Total R&D ARRA COMPETES
18 Department of Energy Total R&D Request: $11.2b House: $10.9b, +1.6% Senate: $11.0b, +3.3% Office of Science Request: $5.1b House: $4.9b, -0.1% Senate: $5.0b, 2.2% ARPA-E Request: $300m House: $220m Senate: $200m Dept of Energy in billions of constant FY 2010 dollars Science Energy Defense ARRA
19 NIST Total R&D Request: $705m House: $673m, +16.1% Senate: $734m, +26.6% NIST Labs R&D (STRS) Request: $521m House: $491m, +9.0% Senate: $521m, +15.6% Competitive Manufacturing and Construction in a Clean-Energy Economy +$34.6 million NIST in millions of constant FY 2010 dollars Total R&D ARRA COMPETES
20 National Institutes of Health Total Request: $32.2b House: $32.2b, +3.2% Senate: $32.2b, +3.2% Cancer and autism spectrum disorders AIDS research Global Fund National Nanotechnology Initiative: +6.0% to $382m Therapeutics for Rare and Neglected Diseases (TRND) National Synchrotron Light Source-II (NSLS-II): $33m National Institutes of Health in billions of constant FY 2010 dollars Total R&D ARRA
21 Department of Defense Total R&D Request: $78.4b House: $79.3b, -5.1% Senate: $79.3b, -5.1% S&T ( medical) Request: $12.4b Senate: $14.0b, -5.5% From major weapons systems to counter insurgency in future years Dept of Defense in billions of constant FY 2010 dollars Basic Applied Other ARRA
22 in the FY 2011 Budget Request percent change from FY 2010 NOAA NIST NASA NSF DOE Energy DOE Defense DOE Science NIH USGS EPA VA DOT DOD USDA DHS -9.0% -5.2% -5.5% -1.3% 9.4% 6.8% 5.0% 3.8% 3.1% 2.8% 1.8% 1.5% -1.4%* 4.1%* -3.8%* 17.8% 22.0% 21.6% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% DOD "S&T" = DOD R&D in "6.1" through "6.3" categories Source: OMB R&D budget data, agency budget justifications, and other agency documents. * - Lighter colored bars indicate percent change with projected FY 2011 earmarks AAAS
23 FY 2011 R&D Budget Request by Function percent change from FY 2010 Transportation 43.0% Commerce Space Environment Energy Health General Science International 17.3% 12.0% 7.4% 6.5% 6.5% 6.3% 0.0% Defense Agriculture -4.8% -5.8% Justice -31.8% -45% -30% -15% 0% 15% 30% 45% 60% Source: OMB and agency budget data. Environment includes natural resources R&D 2010 AAAS
24 STEM Education $3.7b, +$32m from FY 2010 K-12 Education Dept of Ed: $450m, NASA: $63m, NSF: $41m RE-ENERGYSE (Undergraduate) NSF: $19m, DOE: $55m Undergraduate Diversity NSF: +14% to $103m Graduate Fellowships NSF: +16% to $158m, NIH: +5% to $824m, EPA: +55% to $17m DOD: +4% to $40m, DOE: +$10m to $15m
25 Next Steps So far, the House has passed 2 appropriation bills and have subcommittee approval of 9 others. The Senate Appropriations Committee has reported on 11 bills, but none have passed the full Senate. Congress passed a CR which extends funding until December 3. Fall elections will push budget action back to November, December, or even 2011 and it will likely be in the form of an omnibus bill. FY 2012: OMB Memos: 5% reduction; list of low-impact programs totaling 5% of discretionary budget. Initial budget submissions were due to OMB by September 13.
26 FY 2012 R&D Challenges Promoting sustainable economic growth and job creation Defeating the most dangerous diseases and achieving better health outcomes for all while reducing health care costs Moving toward a clean energy future to reduce dependence on energy imports while curbing greenhouse gas emissions Understanding, adapting to, and mitigating the impacts of global climate change Managing the competing demands on land, fresh water, and the oceans for the production of food, fiber, biofuels, and ecosystem services based on sustainability and biodiversity Developing the technologies to protect our troops, citizens, and national interests
27 Industry Innovation Initiatives S SBIR/STTR Extended through January 31, 2011 Keeps same percentages (SBIR: 2.5%, STTR: 0.3%) R&D Tax Credit Proposal Make the tax credit permanent Increase simple formula credit from 14 to 17 percent ARRA Report: $100 billion in innovation $18.7 billion in R&D H.R.5297 Small Business Jobs and Credit Act $30 billion small business lending fund $12 billion in tax breaks Make it in America Agenda Patent Reform
28 International R&D Investment The United States leads the world in R&D investment $369b PPP, 35.7% of world R&D investment But, others are quickly increasing their investment Over , South Korea, +0.99% of GDP to 3.47% China, +0.85% of GDP to 1.49% Taiwan, +0.81% of GDP to 2.63% Japan, +0.57% of GDP to 3.44% United States, +0.10% of GDP to 2.68% President Obama set goal of 3.0% of GDP investment in R&D
29 Trends in Federal R&D percent of GDP 1.4% 1.2% 1.0% 0.8% Total R&D Development 0.6% 0.4% 0.2% Research Facilities 0.0% Source: AAAS Report: Research and Development series. FY 2011 figures are latest AAAS estimates of the FY 2011 request. R&D includes conduct of R&D and R&D facilities. Data to 1984 are obligations from the NSF Federal Funds survey. GDP figures are from Budget of the U.S. Government FY AAAS
30 All Other, $186 Total World R&D, 2007 in billions of PPP $ Total World R&D = $1,054 billion Korea, $42 US, $369 China, $102 Japan, $148 Other EU, $97 U.K., $39 Germany, $72 Source: OECD, Main Science and Technology Indicators, May World = OECD members plus Argentina, China, Israel, Romania, Russian Federation, Singapore, Slovenia, South Africa, Taiwan. Calculated using purchasing power parities AAAS
31 National R&D Investment percent of GDP South Korea Japan U.S. Taiwan EU-27 China Source: OECD, Main Science and Technology Indicators, May AAAS
32 For More Information The AAAS R&D web site is The FY 2012 AAAS Forum on Science and Technology Policy is May 5-6, 2011 in Washington, DC
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